Hashdex Seeks SEC Approval to Add Litecoin to Crypto Index ETF

2025年03月18日

Key Takeaways:

  • Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies.
  • Hashdex’s move could open the door for major investors to explore altcoins, reshaping crypto investment priorities.
  • Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies

Crypto asset management firm Hashdex submitted an amendment proposal to the U.S. Securities and Exchange Commission (SEC) last Friday to add Litecoin (LTC) to its Hashdex Nasdaq Crypto Index US ETF.

If approved, Litecoin will join the ETF’s other proposed digital assets, broadening its exposure to the traditional financial market and institutional investors within a regulated environment.

Litecoin Gains ETF Exposure as Hashdex Seeks Broader Crypto Holdings

The March 14 filing, filed under file number 333-280990, outlined Hashdex’s plans to expand its Crypto Index ETF portfolio beyond Bitcoin and Ethereum.

The revised index is expected to include additional cryptocurrencies such as Solana (SOL), Ripple (XRP), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI), with each operating on its respective blockchain network.

Particularly, the addition of Litecoin would further diversify the fund’s holdings and attract investors interested in a wider array of cryptocurrencies.

An exchange-traded fund (ETF) is a basket of assets—such as stocks, bonds, or cryptocurrencies—traded on stock exchanges.

It allows investors to buy and sell shares throughout the day, offering diversification by spreading risk across multiple assets.

Hashdex’s proposal to add Litecoin isn’t random. Litecoin has been around for over a decade, often seen as Bitcoin’s lighter, faster counterpart.

Its features, such as its popularity, strong liquidity, and lower transaction fees, make it an interesting addition to an ETF.

If this gets the green light, it would be another step towards integrating crypto with traditional finance, which would give both big institutions and everyday investors more options to diversify their portfolios.

Brazil ETF Approval Highlights Hashdex Expansion Strategy

Recently, Hashdex secured approval from Brazil’s Securities and Exchange Commission to launch the world’s first XRP spot ETF on the B3 stock exchange.

This approval allows Brazilian investors to gain exposure to XRP through a regulated investment vehicle.

Hashdex continues to provide more crypto investment options while signaling increasing institutional acceptance of digital assets.

The Hashdex Nasdaq XRP Index Fund was officially established on February 18, 2025, and Genial Investimentos was appointed its administrator.

While a U.S. launch date for the expanded ETF remains undisclosed, the broader crypto ETF market is becoming increasingly competitive.

Since Bitcoin and Ethereum spot ETFs received approval in 2024, fund issuers have accelerated efforts to broaden their offerings.

SEC Decision on Litecoin Could Boost Hashdex Crypto Index ETF Expansion

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 90% likelihood of Litecoin ETF approval before the end of 2025.

Their prediction places Litecoin ahead of Solana (70%), Dogecoin (75%), and XRP (65%).

They argue that Litecoin’s proof-of-work mechanism, similar to Bitcoin’s, and its existing regulatory filings could streamline the approval process.

Demand for crypto ETFs has surged, with spot Bitcoin and Ether ETFs attracting $40.7 billion and $3.18 billion in net inflows since their launches.

While a Litecoin ETF may not see the same demand, Seyffart notes that even modest inflows could make it viable for fund issuers.

The SEC’s final decision on Litecoin, Solana, XRP, and Dogecoin ETFs is expected between October 2 and 18, a timeline closely watched by investors and fund issuers looking to expand the reach of crypto index ETFs.

Frequently Asked Questions (FAQs)

How does Litecoin’s classification as a commodity impact its chances of ETF approval?

Since Litecoin is considered a commodity rather than a security, it avoids the tougher regulations and doubts that securities may face in the same situation. This makes it easier to get approval since it sidesteps the SEC’s stricter oversight on securities branded cryptocurrencies.

What are the risks of a Litecoin ETF?

Among the risks known primarily to ETFs is their reliance on third parties to store assets safely. These parties are often centralized and leave space for potential price manipulation due to crypto’s volatility and liquidity issues.

Could a Litecoin ETF lead to more altcoin ETFs?

Yes, if Litecoin’s ETF gets approved, it could pave the way for others like Solana and XRP. A green light from regulators would show they’re open to approving beyond Bitcoin and Ethereum, which would mean they are now open to altcoins, too.

The post Hashdex Seeks SEC Approval to Add Litecoin to Crypto Index ETF appeared first on Cryptonews.

Ripple’s new trademark filing sparks speculation on crypto custody expansion

2025年03月18日

San Francisco-based fintech company Ripple Labs has filed a trademark application for “Ripple Custody.” The revelation has led to speculations that the firm wants to launch a crypto wallet or custodial services.

According to the application, the firm applied for the trademark on February 25. The accompanying statement explaining the term suggests that it will apply to downloaded software, financial services, peer-to-peer network computer services, and cloud software that can be used for the custody, storage, and transmission of cryptocurrencies and fiat currencies.

One of the statement reads:

“Financial services, namely, custodial services in the nature of maintaining storage and possession of cryptocurrency, fiat currency, virtual currency, and digital currency for financial management purposes.”

These statements, which describe the potential application of the term, have led to speculation about what Ripple might be planning in the coming months. Most times, a trademark application such as this suggests that a company is finalizing its plans to unveil a product.

In 2024, Ripple for trademarks for Ripple Payments, RLUSD, and Ripple USD, a few months before launching the RLUSD stablecoin.

Meanwhile, the news of the application has attracted different reactions from the XRP community. Noah Christopher on X believes that Ripple is expanding into custody and payments to boost its adoption, while Faril speculates that the US might rely on Ripple to custody its crypto reserves.

However, some users have noted that a Ripple Custody app already exists in the App Store. It is simply an authenticator app for institutional customers signing transactions using Metaco to custody their assets. Ripple bought the digital asset custody firm Metaco in  2023.

The United States Patent and Trademark Office (USPTO) has already received and acknowledged the trademark application but has not assigned it to an examiner. The approval process for a trademark in the US only takes a few months unless it is contested.

XRP remains in the green despite a turbulent year

While there is no clarity yet on whether Ripple is planning a custody product or has already launched one, its XRP token remains in the only top ten cryptocurrencies by market cap with some gains year-to-date. Per CoinMarketCap data, the token is up more than 1% YTD after losing more than 10% of its value in the past 90 days.

Although this might seem inconsequential, it represents a much better performance than Bitcoin, Ethereum, Solana, BNB, Cardano ADA, DOGE, and Tron TRX, all of which have been down between 14% and 46% since January 2025.

XRP’s positive performance is due to various factors, including the expectation that the Securities and Exchange Commission (SEC) will soon drop the lawsuit against Ripple over the token’s status. With the regulator dropping crypto-related actions against Coinbase, Uniswap, and Robinhood, many believe that Ripple is next.

XRP ETF proposal
XPR ETF for 2025 is at 75% Yes (Source: Polymarket)

The market expectations are clearly evident in the Polymarket contract on whether the SEC will approve an XRP exchange-traded fund in 2025. Presently, there is a 75% chance of that approval, with a 5% increase in the last 24 hours alone, showing positive sentiment.

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